$106B Anheuser-Busch InBev-SABMiller merger to create beer behemoth

The parent company of Miller beer accepted in principle a takeover bid worth $106 billion from Budweiser's parent in a deal that seeks strength in size. These beers are sitting on a Manhattan bar on Oct. 9, 2015. Photo Credit: Getty Images / Andrew Burton

The parent company of Miller beer accepted in principle a takeover bid worth $106 billion from Budweiser's parent in a deal that seeks strength in size. These beers are sitting on a Manhattan bar on Oct. 9, 2015. (Credit: Getty Images / Andrew Burton)

The world's biggest beer maker clinched a deal Tuesday to take over its nearest rival in a bid to stave off the megabrewers' most serious problems: the surge in popularity of craft brews and weakening sales in the rich markets of the United States and Europe.

SABMiller accepted in principle a takeover bid worth $106 billion from Anheuser-Busch InBev in a deal that seeks strength in size. The...

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The world's biggest beer maker clinched a deal Tuesday to take over its nearest rival in a bid to stave off the megabrewers' most serious problems: the surge in popularity of craft brews and weakening sales in the rich markets of the United States and Europe.

SABMiller accepted in principle a takeover bid worth $106 billion from Anheuser-Busch InBev in a deal that seeks strength in size. The combined company would control nearly a third of the global market.

AB InBev's determination to close the deal after five attempts shows how established beer brands know they have to act to adapt to shifting global tastes.

In wealthy countries, people are turning to locally brewed beers or other drinks such as wine. In the United States, craft beer sales account for 10 percent of beer volumes, compared with virtually nothing a few years ago. The same could soon apply in Europe, said Giulio Lombardi, senior director at Fitch Ratings.

In 2014, craft beer sales in the United States climbed 17.6 percent by volume, according to the Brewers Association, while beer sales overall edged up 0.5 percent.

The sheer size of the deal, however, is likely to invite resistance from regulators amid concerns that the merger could stifle competition. In the United States, the deal is widely expected to require the sale of Miller's stable of beers.